Millennials are purchasing houses — finally. Over the past year, millennials made up the largest share of homebuyers: 37% according to Barron’s. And that trend is set to continue.
Currently, adults aged 26 to 41 — millennials — make up 22% of the total U.S. population. And the pandemic has motivated that sizable group to buy homes. The number of houses owned by adults between ages 30 and 44 years old has increased by 1.3 million since the COVID crisis began.
Information released by the National Association of REALTORS® reveals that married couples aged 31 to 40 were more likely than any other age group to purchase homes during that time. Additionally, the largest group of single people were who purchased homes were younger millennials, aged between 22 and 30 years old. NAR cites new opportunities for remote work as a core reason.
Other factors that contributed to the sudden surge of purchases during this time are the persistently low mortgage rates and, couples with growing wealth. Millennials are approaching their peak earning years, according to Barron’s.
However, the data shows that millennials are tending toward cheaper starter homes. During the second quarter of 2021, the beginning price for homes purchased by a millennial was $304,200. While analysts attribute that trend to student loan debt, still, it seems the market can count on millennial buyers moving forward.